College Station redirects federal funds for affordable housing programs

Zooming in

The median price of an existing home reached almost $322,000 in 2025, placing homeownership out of reach for many middle- and low-income families, documents show. Meanwhile, 58% of renters and 18% of homeowners spend more than one-third of their income on housing costs.

Federal Community Development Block Grant and HOME Investment Partnership Program funds are intended to ease those pressures on low and moderate-income residents.

College Station City Council approved reallocating $485,680 in federal CDBG funds to rehabilitate homes for affordable rental housing.

The change shifts $400,000 previously designated for public facilities and $85,680 from housing services. Federal rules require cities to spend funds within a specific time frame to comply with U.S. Department of Housing and Urban Development requirements.

An eligible nonprofit will take over and make repairs to homes or housing units, which will be rented to families earning less than 80% of the area median income.

During discussions of the agenda item, council member Melissa McIlhaney asked how project locations might be determined. She suggested reinvesting in older and declining neighborhoods rather than new developments.

In a separate action, the council also approved reallocating $339,505 in federal funding to establish a Homeowner Acquisition Rehabilitation program, converting an existing rental house into a homeownership opportunity.

The program allows the city to rehab and sell the home to an income-qualified household, similar to the city’s Down Payment Assistance Program. So far, the city has said it has one home in mind in the Raintree neighborhood.

Council member Bob Yancy questioned whether buyers could later resell the home for profit, to which the city’s Community Development Analyst Raney Whitwell explained the city would be owed that profit.

McIlhaney reiterated her support for expanding affordable housing opportunities for prospective buyers.

What’s next

These funding decisions come as city leaders work to develop a broader Housing Action Plan to expand housing options and address affordability concerns.

The Consolidated Plan and Action Plan point to several contributing factors, including high demand tied to Texas A&M University, rising home prices, limited family-sized housing and a growing population of older residents living on fixed incomes.

College Station receives roughly $1.5 million annually in federal funding specifically for housing and community development.

More conversation surrounding affordable housing can be expected in the coming City Council meetings. Several council members urged faster action on long-term housing strategies at the March 26 meeting.

Also on the agenda

While the city discussed these affordable housing items at length, a water well project dominated the regular agenda. The council also approved a couple of rezoning requests and accepted its annual financial report.